Multi Commodity Exchange of India Ltd plans to invest Rs two billion (bn) to start dedicated coal and minerals trading platforms as it seeks licences to operate in the segments. The company has incorporated separate units to run the coal and minerals operations, according to regulatory filings. The move follows government policy changes intended to improve price discovery and transparency in the domestic market. Securities and Exchange Board of India has approved the plan to invest about Rs one billion (bn) in each of the new businesses, the exchange said, while the ventures also require licences from the Coal Controller Organisation and the Indian Bureau of Mines. The government has notified rules permitting commodity exchanges to trade coal, iron ore, bauxite and other minerals through centralised electronic platforms that allow physical delivery contracts. Authorities have opened a portal for coal exchange applications and indicated that a portal for minerals bourses will be launched shortly. The change is aimed at reducing reliance on overseas benchmarks for domestic coal and mineral prices, which the exchange described as a policy imperative for better price discovery and supply chain efficiency. Officials expect the first exchanges in each segment to be operational in the financial year starting April one, subject to the remaining clearances. The structure is designed to allow sellers and buyers to trade physical delivery contracts on transparent electronic venues. The announcement prompted a market response, with MCX shares rising as much as three point one per cent to Rs 3,022.50 and the stock up 32 per cent year to date. MCX currently derives most of its activity from gold and energy derivatives, with precious metal accounting for more than half of daily turnover in the quarter ended June 30 and energy comprising about 40 per cent. The exchange said each new segment is expected to grow and expressed its intention to play a central role in developing those markets. The plan aligns with wider policy efforts to operationalise coal blocks and strengthen domestic commodity infrastructure.